(1) "Holder" means a resident of this state who either
purchases a service agreement or is legally in possession of a
service contract and is entitled to enforce the rights of the
original purchaser of the service contract.

(2) "Maintenance agreement" means a contract for a limited
period that provides only for scheduled maintenance.

(3) "Provider" means a person who is obligated to a holder
pursuant to the terms of a service contract to repair, replace or
perform maintenance on or to indemnify the holder for the costs of
repairing, replacing or performing maintenance on goods.

(4) "Service contract" means an agreement entered into for a
separately stated consideration and for a specified term under which a provider agrees to repair, replace or maintain a product or
provide indemnification for the repair, replacement or maintenance
of a product for operational or structural failure caused by a
defect in materials or workmanship or by normal wear. A service
contract may additionally provide for incidental payment or
indemnity under limited circumstances including towing, rental and
emergency road service or for the repair or replacement of a
product for damage resulting from power surges or accidental damage
incurred in handling the product.

(5) "Warranty" means in relation to a product or service an
undertaking that guarantees indemnity for defective parts,
mechanical or electrical breakdown, labor costs or other remedial
measures, such as repair or replacement of the product or
repetition of services and that is made solely by the manufacturer,
importer or seller of the product or services made without payment
of additional consideration, not negotiated or separated from the
sale of the product or service and incidental to the sale of the
product or service.